After breaking above the ever-so-important $4,000 level, Bitcoin has been able to maintain above this price, but BTC has not been able to garner any significant buying pressure that allows it to climb higher, which could spell trouble for the cryptocurrency.
One analyst is now importantly noting that Bitcoin’s bears are ardently stopping the bulls from pushing BTC any higher, but also explained that a break above $4,300 would create an ugly situation for them, as it would open the gates for further gains.
At the time of writing, Bitcoin is trading down nominally at its current price of $4,030, where it has been trading at for the past couple of days.
Although traders and analysts alike have long hypothesized that a break above $4,000 – which was formerly an incredibly strong level of resistance – would lead the crypto to surge higher. Despite this, increased selling pressure has led it to remain stagnant just a hair above $4,000, which has not yet been validated as a fresh support level.
While speaking to MarketWatch, Alex Kuptsikevich, a financial analyst at FxPro, echoed a rumor that has been drifting throughout the crypto community regarding BTC’s current price action looking eerily similar to that which occurred in November just prior to its crash from $6,000 to $3,000.
“The current absence of a dynamic is a bit scary, as it resembles the October decline, which ended in an impressive selloff,” he explained, further adding that the $3,900 to $4,000 range has become an inflection point for BTC.
If the postulation regarding Bitcoin’s current price action mimicking that of last November’s is accurate, than a significant drop could be in store.
Analyst: BTC Must Break Above $4,300 in Order for Further Gains to be Plausible
Although Bitcoin is presently stuck at its current price levels, if bulls are able to garner a significant amount of buying pressure that pushes the crypto to above $4,300, it may be able to surge significantly higher and recover much of its recent losses.
“Someone very clearly defending shorts in this range. Going to get ugly for them if 4300 breaks,” he explained in a recent tweet.
It is important for traders to note that earlier this month Bitcoin surged to highs of $4,200 before spiraling back down to roughly $3,700, which validated the former price level as a strong area of resistance. Without a significant influx of buying pressure, it is highly unlikely that BTC will be able to climb past the $4,200-$4,300 region in the near future.
As the week drags on, traders and analysts alike will gain greater insight into the direction Bitcoin is heading as its reactions to key price levels becomes more apparent.
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